I’ve been watching for some time how central banks around the world are accelerating their digital currency projects, and honestly, this has become much more serious than many people thought a few years ago.

Basically, the CBDC (Central Bank Digital Currency) is digital money issued directly by each country’s central bank. It’s not the same as Bitcoin or Ethereum, which are decentralized. The CBDC keeps everything under state control, allowing the government to oversee money flows, control monetary policy, and, well, have greater control over the economy. Some see it as necessary, others as concerning.

What’s interesting is that this has already stopped being theory. The Bahamas was a pioneer with its Sand Dollar since 2020, considered the world’s first operational CBDC. Then Nigeria came with the eNaira in 2021, Jamaica with JAM-DEX, and the Eastern Caribbean with DCash. But where things really start to get big is in China with e-CNY, which is already being used in major cities for everyday payments, public transportation, and services. India is running pilot tests with its digital currency, Brazil is developing Drex to integrate smart contracts, and practically all major economies are experimenting with CBDCs to some extent.

Now, why the rush? First, CBDCs make payments faster and cheaper, without depending on bank hours. Second, for governments they’re a powerful tool: they can track money in real time, combat money laundering, and reduce tax evasion. It’s financial control at its maximum.

But here comes the delicate part. Privacy is a real problem if adequate safeguards aren’t in place. Each transaction could be monitored. On top of that, there are cyber risks and another issue that not everyone mentions: if people move their savings en masse into CBDC wallets, commercial banks could lose capital, which would affect credit and financial stability.

What I see is that the CBDC isn’t just a technological change—it’s a redefinition of how states will relate to money. Currently, more than 130 countries are researching or developing some kind of CBDC. In the future, they will likely coexist with cryptocurrencies and stablecoins, creating a much more complex financial system. Personally, I think this is an inevitable move, but how it’s implemented will determine whether it ends up being a tool for efficiency or for financial surveillance.